HPCL to commission Bhatinda refinery by March 2011

Mumbai: Hindustan Petroleum Corporation (HPCL) will commission its Rs 18,919-crore grass root refinery at Bhatinda, Punjab by March 2011, said Mr Arun Balkrishnan, Chairman and Managing Director, HPCL.

Mr Balkrishnan said that the refinery is expected to ease product availability for the company’s marketing network in the Northern market. With the commissioning of the refinery project the company would be in a position to aggressively pursue marketing opportunities in the region, he said.

Mr Balkrishnan said that the company has been facing severe liquidity problems resulting in increase short and medium-term borrowings, which have become alarming. This has necessitated the realignment of capital and revenue expenditure without compromising on long-term profitability, he said

The company is going ahead with the much needed infrastructure improvement, but other expenditures would be scaled down or postponed. Revenue expenditure is being cut to the extent that is feasible, Mr Balkrishnan added.

Mr L. N. Mittal, through Mittal Energy Investments Pte Ltd, hold 49 per cent stake in the refinery project.